Nomura and Macquarie announced that they have entered into an agreement for Nomura to acquire Macquarie’s U.S. and European public asset management business. The business has approximately $180 billion in retail and institutional client assets across equities, fixed income, and multi-asset strategies.
Nomura identified global asset management as a key strategic growth priority for the organization. And through this deal, Nomura will significantly expand the global capabilities and client footprint of its Investment Management Division – which currently manages about $590 billion in client assets.
Upon completion, the total assets under management of Nomura’s Investment Management franchise are expected to increase to around $770 billion, with over 35% being managed on behalf of clients outside Japan. This acquisition will also provide Nomura with a scaled hub, based in Philadelphia, to further grow its international Investment Management business.
This high-operating margin business will bring distribution networks in retail and institutional segments. And the business has a presence on nine of the top ten retail distribution platforms in the U.S., and strong institutional relationships, including within U.S. insurance, a growing sector for asset managers globally.
The business is managed by an experienced team led by Shawn Lytle (President of the Macquarie Funds and Head of Americas for Macquarie Group). Shawn, along with John Pickard, CIO Equities & Multi-Asset, Greg Gizzi, CIO Fixed Income, and Milissa Hutchinson, Head of U.S. Wealth, will continue to manage the business following the acquisition.
In partnership with this management team, Nomura plans to address several initiatives to support organic growth, increased AUM scale, and diversification of the business’s capability set post-acquisition. These initiatives – which will build upon the strengths of the business and aim to position the platform to continue to deliver strong and long-term investment performance include developing new investment capabilities designed to meet the needs of clients; scaling the active ETF platform established by the business in mid-2023; investing in talent and data analytics to grow the distribution platform; and utilizing the business’s existing distribution channels to provide its retail and institutional clients with access to the broader set of Nomura asset management capabilities.
Deal terms: Nomura will acquire 100% of the stock of three companies that operate Macquarie’s U.S. and European public asset management business for an all-cash purchase price of $1.8 billion (subject to closing adjustments). And the deal is targeted to close by the end of the calendar year, subject to customary closing conditions and regulatory approvals.
As part of the deal, Nomura and Macquarie have agreed to collaborate on product and distribution opportunities, including Nomura being a U.S. wealth distribution partner for Macquarie Asset Management and providing continued access for U.S. wealth clients to Macquarie Asset Management’s Alternative investment capabilities. Additionally, Nomura has committed to providing seed capital for a range of Macquarie Asset Management’s Alternative funds tailored for U.S. wealth clients.
A joint working group between Nomura and Macquarie will also be set up to explore additional opportunities to create client value through further collaboration between the two organizations.
KEY QUOTES:
“This acquisition will align with our 2030 global growth and diversification ambitions to invest in stable, high margin businesses.”
“It will be transformational for our Investment Management Division’s presence outside of Japan, adding significant scale in the U.S., strengthening our platform, and providing opportunities to build our public and private capabilities. We are delighted with the prospect of welcoming all 700-plus employees that will be joining the Nomura Group.”
Kentaro Okuda, Nomura President and Group CEO
“This transaction will accelerate the expansion of our global Investment Management business and will be a significant step in building a truly global franchise with a comprehensive set of solutions to serve investors worldwide.”
Chris Willcox, Nomura’s Chairman of the Investment Management Division
